"We continue to make significant progress with tivozanib, including
reporting the final overall survival results from TIVO-1, receiving the
FDA's acceptance of the NDA submission and expanding tivozanib clinical
development into patients with triple negative breast cancer," said Tuan
Ha-Ngoc, president and chief executive officer of AVEO. "On the heels of
our recent financing, we are continuing to build out our commercial
infrastructure and remain focused on preparing for the potential launch
of tivozanib in advanced RCC in the second half of 2013."

Full Year 2012 Financial Results

• Total collaboration revenue for 2012 was approximately $19.3 million
compared with $164.8 million for 2011. Revenue in 2012 primarily
consisted of a $15.0 million milestone from Astellas recognized upon the
acceptance of AVEO's NDA filing. The decrease compared to 2011 is
primarily due to revenue recognized in conjunction with the signing of
AVEO's collaboration agreement with Astellas, as well as revenue from
AVEO's collaboration agreements with OSI, Centocor, and Biogen that did
not recur during 2012.

• Research and development (R&D) expense for 2012 was $91.4 million
compared with $101.7 million for 2011. The decrease in R&D expense was
primarily due to a decrease in licensing costs, largely related to a
decrease in payments to Kyowa Hakko Kirin, a decrease in manufacturing
costs for ficlatuzumab and a decrease in clinical trial costs. These
decreases were partially offset by an increase in personnel-related
expenses.

• General and administrative (G&A) expense for 2012 was $36.9 million
compared with $29.2 million for 2011. The increase in G&A expense was
primarily driven by an increase in personnel-related expenses, expenses
related to pre-commercialization activities for tivozanib, and an
increase in rent expense, largely related to AVEO's future headquarters.

• Restructuring expense for 2012 was $2.6 million, with no corresponding
expense for 2011. The restructuring expense related to the company's
strategic restructuring, which the company announced on October 30, 2012.

• Net loss for 2012 was $114.4 million, or basic and diluted net loss
per share of $2.64, compared with net income of $30.6 million, or basic
and diluted net income per share of $0.77 and $0.74, respectively, for
2011.

Based on current operating plans, AVEO expects to end 2013 with
approximately $60 million in cash, cash equivalents and marketable
securities, and anticipates that this capital is sufficient to fund its
operations into the second quarter of 2014.

Key Recent Developments

Reported Final Overall Survival Results from TIVO-1 Trial: AVEO
and Astellas yesterday announced the final overall survival data from
TIVO-1 (Tivozanib Versus
sOrafenib in 1st
line advanced RCC), a global, randomized, Phase 3, superiority
clinical trial evaluating the efficacy and safety of tivozanib
compared to sorafenib in 517 patients with advanced renal cell
carcinoma (RCC). These data will be reviewed in more detail by AVEO
management during the company's conference call and webcast today at
10:00 a.m. (ET), and will be presented on Saturday, February 16, 2013
at the 2013 Genitourinary Cancers Symposium (ASCO GU), abstract number
350.

Completed public offering raising total net proceeds of
approximately $53.8 million: In January 2013, AVEO completed an
underwritten public offering of 7,667,050 shares of common stock,
comprised of 6,667,000 shares of common stock initially offered and an
additional 1,000,050 shares of common stock sold pursuant to the
underwriters' exercise of their over-allotment option, at a price to
the public of $7.50 per share. Aggregate net proceeds to the company
were approximately $53.8 million.

Received the FDA's Acceptance for Filing the New Drug Application
(NDA) for Tivozanib: In November 2012, AVEO and Astellas announced
that the U.S. Food and Drug Administration (FDA) accepted for filing
the NDA for tivozanib with the proposed indication for the treatment
of patients with advanced RCC. According to the timelines established
by the Prescription Drug User Fee Act (PDUFA), the review of the NDA
is expected to be complete by July 28, 2013.

Initiated BATON-BC Phase 2 Trial of Tivozanib in Patients with
Triple Negative Breast Cancer: In December 2012, AVEO and Astellas
announced the initiation of patient enrollment in a randomized,
double-blind, multicenter Phase 2 clinical trial, called BATON-BC,
evaluating the efficacy of tivozanib in combination with paclitaxel
compared to placebo in combination with paclitaxel in patients with
locally recurrent or metastatic triple negative breast cancer who have
received no prior systemic therapy for advanced or metastatic breast
cancer. BATON-BC is the third trial to be initiated as part of the
BATON (Biomarker Assessment
of Tivozanib in ON (News - Alert)cology)
clinical development program, which includes ongoing Phase 2 trials in
advanced metastatic colorectal cancer and advanced RCC. Data from
these trials is expected to be available in 2014.

The AVEO management team will host a conference call at 10:00 a.m. (ET)
today. The call can be accessed by dialing 1-866-831-6243 (domestic) or
1-617-213-8855 (international) five minutes prior to the start of the
call and providing the passcode 81400823. A replay of the call will be
available approximately two hours after the completion of the call and
can be accessed by dialing 1-888-286-8010 (domestic) or 1-617-801-6888
(international), providing the passcode 61126312. The replay will be
available for two weeks from the date of the call.

A webcast of the conference call can also be accessed by visiting the
investors section of the AVEO website at investor.aveooncology.com. A
replay of the webcast will be archived on the company's website for two
weeks following the call.

About AVEO

AVEO Oncology (NASDAQ: AVEO) is a cancer therapeutics company committed
to discovering, developing and commercializing targeted therapies to
impact patients' lives. AVEO's proprietary Human Response PlatformTM
provides the company unique insights into cancer biology and is being
leveraged in the discovery and clinical development of its cancer
therapeutics. For more information, please visit the company's website
at www.aveooncology.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements of AVEO within
the meaning of The Private Securities Litigation Reform Act of 1995 that
involve substantial risks and uncertainties. All statements, other than
statements of historical facts, contained in this press release are
forward-looking statements. The words "anticipate," "believe,"
"estimate," "expect," "intend," "may," "plan," "target," "potential,"
"could," "should," "seek," or the negative of these terms or other
similar expressions, are intended to identify forward-looking
statements, although not all forward-looking statements contain these
identifying words. These forward-looking statements include, among
others, statements about: the planned launch of tivozanib; AVEO's
estimates for its 2013 year-end cash balance and its estimate with
respect to the availability of cash to fund its operating plans into the
second quarter of 2014; the targeted date for the completion of the
FDA's review of the NDA; tivozanib's potential in treating patients with
kidney cancer; the timing of availability of data from the BATON trials;
and AVEO's plans to leverage its Human Response Platform™. Actual
results or events could differ materially from the plans, intentions and
expectations disclosed in the forward-looking statements that AVEO makes
due to a number of important factors, including risks relating to:
whether the results of TIVO-1 are sufficient to obtain marketing
approval for tivozanib in the U.S. and abroad, which turns on the
ability of AVEO to demonstrate to the satisfaction of the FDA or
comparable foreign regulatory authorities the safety and efficacy of
tivozanib based upon the findings of TIVO-1, including its data with
respect to progression-free survival, the rate of adverse events,
overall survival and other information that the FDA may determine to be
relevant to approvability; AVEO's ability to demonstrate in subsequent
trials any safety and efficacy it demonstrated in earlier trials of
tivozanib; ongoing regulatory requirements with respect to the approval
of tivozanib, including the risk that FDA or any comparable foreign
regulatory agency could require additional positive clinical trials as
the basis for product approval; AVEO's ability to obtain and maintain
adequate protection for intellectual property rights relating to its
product candidates and technologies; unplanned operating expenses;
AVEO's ability to raise the substantial additional funds required to
achieve its goals; adverse general economic and industry conditions;
competitive factors; AVEO's ability to maintain its collaboration with
Astellas; AVEO's and Astellas' ability to successfully launch and
commercialize tivozanib if and when it may be approved for
commercialization by the FDA and/or foreign regulatory authorities; and
those risks discussed in the section titled "Risk Factors" included in
AVEO's Current Report on Form 8-K filed with the SEC (News - Alert) on January 16, 2013
and in its other filings with the SEC. The forward-looking statements in
this press release represent AVEO's views as of the date of this press
release. AVEO anticipates that subsequent events and developments will
cause its views to change. However, while AVEO may elect to update these
forward-looking statements at some point in the future, it specifically
disclaims any obligation to do so. You should, therefore, not rely on
these forward-looking statements as representing AVEO's views as of any
date subsequent to the date of this press release.

AVEO Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

For the Three Months

For the Years

Ended December 31,

Ended December 31,

2012

2011

2012

2011

Collaboration revenue

$

15,531

$

1,096

$

19,286

$

164,849

Operating expenses:

Research and development

24,033

18,542

91,358

101,735

General and administrative

9,463

6,986

36,932

29,167

Restructuring

2,633

-

2,633

-

36,129

25,528

130,923

130,902

Income (loss) from operations

(20,598

)

(24,432

)

(111,637

)

33,947

Other income and expense:

Other income (expense), net

(32

)

(7

)

247

10

Interest expense

(888

)

(925

)

(3,501

)

(3,836

)

Interest income

38

195

497

527

Other expense, net

(882

)

(737

)

(2,757

)

(3,299

)

Net income (loss)

$

(21,480

)

$

(25,169

)

$

(114,394

)

$

30,648

Basic net income (loss) per share

Net income (loss)

$

(0.49

)

$

(0.58

)

$

(2.64

)

$

0.77

Weighted average number of common shares outstanding

43,486

43,132

43,374

39,715

Diluted net income (loss) per share

Net income (loss)

$

(0.49

)

$

(0.58

)

$

(2.64

)

$

0.74

Weighted average number of common shares and dilutive common share
equivalents outstanding